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Bitcoin’s Dead Act Sets Rival Cardano Towards Its 15-Month High



  • As Bitcoin sails on calm waters, its rival Cardano is up more than 36 percent already in the third quarter.
  • Traders looking to diversify from the top yet flat cryptocurrency could pump Cardano further into July.
  • The upside sentiment takes cues from the altcoin’s upgrade to proof-of-stake at the end of this month.

When bitcoin traders get bored, they pump altcoins.

So it appears in the last week’s price action across the alternative cryptocurrency universe. As Bitcoin trends inside a 0-1 percent trading range, its top blockchain rivals, including Ethereum, XRP, Bitcoin Cash, Chainlink, and others, have surged higher.

But the most notable performed in the top-10 crypto index is Cardano. The sixth-largest blockchain project’s market cap has surged by more than 36 percent entering the third quarter. Meanwhile, its native token ADA has also posted a similar parabolic move to the upside.

cardano, cryptocurrency, adausdt, adausd, adabtc

Cardano's ADA in parabolic upside rally since its March 2020 low. Source:

The Get-Rich Cardano Pump

It is safe to assume that a lot of speculation is rising on Cardano. The project did not do well enough after crashing by over 95 percent from its January 25 all-time high. The first version of its mainnet launch featured token transfers on a federated blockchain – nothing new about that.

But the narrative started shifting entering 2020. IOHK, the core development team that backs Cardano, deployed the code for the project’s second upgrade, called “Shelley.” It will get activated by the end of July – and with it will come Cardano’s long-awaited proof-of-Stake (PoS) protocol featuring staking rewards.

Now all of what is said above is a promise. Cardano has neither confirmed a successful hard fork nor has proven that it is a better PoS project than its top rivals Tezos and Chainlink. Moreover, the Ethereum’s switch from proof-of-work to proof-of-stake next year is also going to increase the competition.

But the announcement appears bullish to the crypto land. It is enough for traders to leave aside their Bitcoin holdings for a while and hedge into Cardano’s ADA to “buy the hype.” As a result, the ADA/BTC exchange rate stands  55 percent higher month-to-date.

More Room to Grow

Wilson Withiom of data aggregator service Messari explained the hype in a note published last week. The research analyst credited the term “staking rewards” as the primary catalyst behind ADA’s rally (in both the US dollar and bitcoin-enabled markets). Excerpts:

“Prospective stakers scooping up ADA and those speculating on the allure of staking rewards have likely driven this upward trend […] Staking is more lucrative early on since participants experience a diminishing return as more stakers join the network.”

Mr. Withiom, meanwhile, added that the Cardano token has “plenty of room for growth.”

That leaves ADA under the spell of magnetizing upside targets, starting with the nearest ones at 1,613 sats, followed by 1,944 sats and beyond. The levels have been taken from a Fibonacci retracement graph drawn from ADA’s April 3, 2019’s top to January 14, 2020’s bottom.

cardano, cryptocurrency, adausdt, adausd, adabtc

ADA upside targets plotted on a Fibonacci retracement graph. Source:

Therefore, as long as Bitcoin remains unattractive, boring, and stable, traders may keep cashing on the hypes created by neighboring tokens. Meanwhile, a breakout move in the top cryptocurrency could prompt altcoins, including ADA, to pare part of their recent gains.

The ADA/BTC has hit its 15-month high, anyway.

Photo by Avi Naim on Unsplash



ETH Cools Off After 13% Weekly Gains, What’s Next? (Ethereum Price Analysis)



ETH/USD – Bulls Retest Bearish .618 Fib Resistance

Key Support Levels: $410, $400, $387.
Key Resistance Levels: $416, $421, $439.

Ethereum saw a strong 13% price surge this past week as it reached as high as $421 (1.414 Fib Extension). More specifically, the buyers could not close a daily candle above the resistance at the bearish .618 Fib Retracement at $416.

After heading back into $400 yesterday, the bulls have rebounded and are now retesting the aforementioned level.

ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, once the buyers break $416, the first level of resistance lies at $421.50 (1.414 Fib Extension). This is followed by resistance at $434, $439 (August 2018 Highs), and $445 (bearish .786 Fib). $450, added resistance lies at $462 and $475.

On the other side, the first level of support lies at $410. Beneath this, support is found at $400, $387 (.382 Fib), and $377 (.5 Fib).

The RSI is approaching overbought conditions but still has room to push higher before becoming truly overbought.

ETH/BTC – Bulls Testing 100-days EMA Resistance

Key Support Levels: 0.0311 BTC, 0.0305 BTC, 0.03 BTC.
Key Resistance Levels: 0.0327 BTC, 0.0337 BTC, 0.0341 BTC.

Against Bitcoin, Ethereum struggled this week as it dropped as low as 0.0305 BTC. It has since bounced higher to climb back above 0.031 BTC to trade at the current 0.0318 BTC level. It is now testing resistance at a 100-days EMA and must overcome this to head back toward the October highs at 0.0337 BTC.

ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, if the bulls can break the 100-days EMA, the first level of resistance lies at 0.0327 BTC (bearish .236 Fib Retracement). This is followed by resistance at 0.0337 BTC (March 2019 Support – now resistance), 0.0341 BTC (bearish .382 Fib), and 0.035 BTC.

On the other side, the first level of support lies at 0.0311 BTC (.618 Fib). Beneath this, support lies at 0.0305 BTC, 0.03 BTC, and 0.0295 BTC (200-days EMA).

The Stochastic RSI recently rebounded, which put an end to the downward pressure. For a bullish recovery above the 100-days EMA, the RSI must pass the mid-line to indicate bullish momentum within the market.


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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


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Binance Bitcoin Futures Markets Clock Highest 24h Volumes as Institutions Go Long



With bitcoin’s latest rally beyond the $13,000 mark, it seems like the next bull market is here. It can be seen from BTC markets that have been on fire for the last 7 days, including derivatives. The latest data shows that bitcoin futures markets on Binance have clocked the highest 24h BTC futures volumes amongst all platforms. This comes amid the exchange registering $760 million in open interest.

Binance Experiences Explosive Bitcoin Futures Market Action

Bitcoin rallied beyond $13,000, galvanizing every BTC related market along the way, including the futures market on Binance.

As per the latest data from crypto market analytics firm Skew, the exchange logged the highest 24h bitcoin futures volume amongst all BTC derivative trading platforms.

Binance Clocks Highest 24h Bitcoin Futures Volume, Source: Skew

This is coming after the Malta-based cryptocurrency exchange registered heavy futures trading traffic as open interest (OI) jumped 30 percent to $150 million in just 2 days from October 19 to October 21. Binance’s current OI figure stands at $760 million.

Skew’s data also shows that Binance hosted the highest aggregated daily bitcoin futures volumes on October 21. The cumulative figure was $32 billion that day, out of which Binance’s share was $8.3 billion. But at $3.3 billion, Binance still has the highest aggregated futures volumes.

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BTC Futures Market Metrics On Other Platforms Are Booming As Well

With bitcoin’s recent week-long upside correction, traders using other platforms are mainly interested in BTC futures. Skew’s observations from October 20 show that there has been a 54 percent appreciation in 24h Futures and Swap Volumes on Huobi.

Compared to bitcoin, only ether (ETH) has experienced a 30 percent surge in volumes. And that’s not all. Bitcoin futures open interest on institutional platform CME rose to $784 million today. This has added nearly 1500 contracts to the already bubbling CME BTC futures roster, scheduled for expiry by the end of this month.

But how are these futures traders on CME actually betting on bitcoin?

Institutions Are Going Long While Hedge Funds Are Busy Shorting

Skew did a deep inspection of the above spike of bitcoin futures open interest on the CME, and the firm concluded that bets are mainly coming from institutions and hedge funds. The former is more optimistic about bitcoin price rallying further in the near term, as opposed to hedge funds who have record short bets on BTC. The same is visible from the Commitment of Trader (COT) numbers displayed in the chart below:

Amidst all the above-market activity, the aggregated open interest for bitcoin futures for all platforms sharply rose to $5 billion and has since remained the same.


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Bitcoin Price Could Triple Even After a Modest Switch From Gold, JP Morgan Says



Despite having a complicated past, it seems that JP Morgan’s love for Bitcoin is growing every day thanks to its potential as an investment and store of value.

In a recent report, the American bank shared with its investors an analysis of Bitcoin’s current situation and possible future scenarios regarding prices and fundamental value. The bank explained that under the current conditions, Bitcoin has a good chance of increasing its price.

JP Morgan Believes Bitcoin Could be an Alternative to Gold

JP Morgan believes that investors could switch from gold to bitcoin as a way to diversify their portfolio and having another uncorrelated storage of value. This is especially important for those who don’t want to depend exclusively on gold when it comes to diversify their risk exposure:

“Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the bitcoin price.

The report also adds that adoption is key to increasing Bitcoin’s perceived utility, and therefore, its price. They explain that it is necessary to observe a more significant number of “economic agents” accepting cryptocurrencies as a means of payment in order to talk about a historical price appreciation scenario.

This is not far from reality. In fact, bitcoin is increasing acceptance by large economic agents (which seems to prove JP Morgan’s thesis). The recent rise in prices from $10,500 to the current $13,110 began after the payment processor Square announced a $50 million investment in Bitcoin.

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PayPal’s announcement to support the purchase and sale of cryptocurrency -BTC, ETH, BCH, and LTC for now- also further catalyzed the crypto markets’ bullish sentiment.

A Generational Thing

JP Morgan also assures that Bitcoin’s acceptance within the global financial culture goes through a cultural or generational context. As boomers leave the market and millennials take a more prominent position, Bitcoin and other digital tokens become more relevant in the investment world.

“The potential long-term upside for bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that Millenials would become over time a more important component of investors’ universe.”

However, this assertion must be taken with a pinch of salt since studies reveal that Gen Z -the Millenials’ offspring- are not as enthusiastic about the use of crypto, opting for alternatives involving the digitalization of fiat money.

Jp Morgan believes Bitcoin could be largely adopted, but GenZers think otherwise
Gen Zers are not really into Bitcoin. Image: Business Insider

JP Morgan’s statements show the bank’s ability to adapt to new market trends, which is also characteristic of PayPal. Just two years ago, the bank’s CEO said Bitcoin was “worse than tulip bulbs” while PayPal’s CEO referred to Bitcoin in the same way:

“Bitcoin is the greatest scam in history. It’s a colossal pump-and-dump scheme, the likes of which the world has never seen.

Bitcoin is having a good time, with many models anticipating potential upward behavior over the next few months. The most controversial and discussed one, the stock-to-flow model, predicts that Bitcoin could reach $1 million by around 2026.


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